DIVISION 11. FUNDS TRANSFERS [11101. - 11507.]

Division 11 added by Stats. 1990, Ch. 125, Sec. 2.

§§ 11101–11507 · 38 sections

1. CHAPTER 1. Subject Matter and Definitions §§ 11101–11108 · 8 sections

   • § 11101 This division may be cited as Uniform Commercial Code—Funds Transfers.
   • § 11102 Except as otherwise provided in Section 11108, this division applies to funds transfers defined in Section 11104.
   • § 11103 (a) In this division: (1) “Payment order” means an instruction of a sender to a receiving bank, transmitted orally or in a record, to pay, or to cause another…
   • § 11104 In this division: (a) “Funds transfer” means the series of transactions, beginning with the originator’s payment order, made for the purpose of making payment…
   • § 11105 (a) In this division: (1) “Authorized account” means a deposit account of a customer in a bank designated by the customer as a source of payment of payment…
   • § 11106 (a) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice…
   • § 11107 Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision…
   • § 11108 (a) Except as provided in subdivision (b), this division does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act…
2. CHAPTER 2. Issue and Acceptance of Payment Order §§ 11201–11212 · 12 sections

   • § 11201 “Security procedure” means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment order or…
   • § 11202 (a) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is…
   • § 11203 (a) If an accepted payment order is not, under subdivision (a) of Section 11202, an authorized order of a customer identified as sender, but is effective as an…
   • § 11204 (a) If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and not effective as the order of the…
   • § 11205 (a) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously instructed…
   • § 11206 (a) If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to the…
   • § 11207 (a) Subject to subdivision (b), if, in a payment order received by the beneficiary’s bank, the name, bank account number, or other identification of the…
   • § 11208 (a) This subdivision applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number. (1) The receiving…
   • § 11209 (a) Subject to subdivision (d), a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. (b) Subject to…
   • § 11210 (a) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record. A notice of rejection need not…
   • § 11211 (a) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally or in a record. If a…
   • § 11212 If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the…
3. CHAPTER 3. Execution of Sender’s Payment Order by Receiving Bank §§ 11301–11305 · 5 sections

   • § 11301 (a) A payment order is “executed” by the receiving bank when it issues a payment order intended to carry out the payment order received by the bank. A payment…
   • § 11302 (a) Except as provided in subdivisions (b) to (d), inclusive, if the receiving bank accepts a payment order pursuant to subdivision (a) of Section 11209, the…
   • § 11303 (a) A receiving bank that (i) executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender’s order,…
   • § 11304 If the sender of a payment order that is erroneously executed as stated in Section 11303 receives notification from the receiving bank that the order was…
   • § 11305 (a) If a funds transfer is completed but execution of a payment order by the receiving bank in breach of Section 11302 results in delay in payment to the…
4. CHAPTER 4. Payment §§ 11401–11406 · 6 sections

   • § 11401 “Payment date” of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary’s bank. The payment date may…
   • § 11402 (a) This section is subject to Sections 11205 and 11207. (b) With respect to a payment order issued to the beneficiary’s bank, acceptance of the order by the…
   • § 11403 (a) Payment of the sender’s obligation under Section 11402 to pay the receiving bank occurs as follows: (1) If the sender is a bank, payment occurs when the…
   • § 11404 (a) Subject to subdivision (e) of Section 11211, and subdivisions (d) and (e) of Section 11405, if a beneficiary’s bank accepts a payment order, the bank is…
   • § 11405 (a) If the beneficiary’s bank credits an account of the beneficiary of a payment order, payment of the bank’s obligation under subdivision (a) of Section 11404…
   • § 11406 (a) Subject to subdivision (e) of Section 11211 and subdivisions (d) and (e) of Section 11405, the originator of a funds transfer pays the beneficiary of the…
5. CHAPTER 5. Miscellaneous Provisions §§ 11501–11507 · 7 sections

   • § 11501 (a) Except as otherwise provided in this division, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party.…
   • § 11502 (a) As used in this section, “creditor process” means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf…
   • § 11503 For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an…
   • § 11504 (a) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that are payable from the sender’s…
   • § 11505 If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the…
   • § 11506 (a) If, under this division, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be…
   • § 11507 (a) The following rules apply unless the affected parties otherwise agree or subdivision (c) applies: (1) The rights and obligations between the sender of a…